Mini Bonds: More Fun, More Risk

Small Issues by Young Companies Attract Investors, but Beware

It’s easy to see why so-called mini bonds are appealing to some small investors. It’s also easy to see why anyone thinking of buying a mini bond should think hard before forking over the cash.

A growing number of small, young companies have issued mini bonds through crowdfunding websites in recent years. These debt offerings are called minis because they typically raise only a couple of million dollars or so for the borrower and investors don’t need to put up large amounts.